The American- Chinese- Saudi- Love Triangle

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "The American- Chinese- Saudi- Love Triangle"

Transcription

1 POLICY BRIEF: The American- Chinese- Saudi- Love Triangle معهد شؤون الخليج Institute for Gulf Affairs BY: DANIEL MORILLO, SECURITY AND MILITARY POLICY ANALYST August 214

2 The World s Most Influential Love Triangle While analysts and scholars the world over warn of the deteriorating condition of the relationship between the US and Saudi Arabia, is quietly maneuvering into a position to swoop in and provide the Saudi s what the US has provided for so long: a consistent high-demand marketplace for Saudi oil and military protection to ensure safe passage for Saudi oil exports. As s economy continues to grow at a questionably unsustainable pace, their demand for oil will only increase in the coming decades. In fact, the growth of the Chinese economy is dictated by oil imports. Their growing prominence in the world also has pushed the Chinese to invest more heavily in their military, announcing a 12% increase in military spending this year. At the same time, US imports of foreign oil imports have decreased in recent years as fracking and natural gas production has grown in the US. 1 The Energy Information Administration states, The net import share of total U.S. energy consumption is estimated at 4% in 24, compared with 16% in 212 and about 3% in The Pentagon has also announced more significant cuts to military spending in coming years, cutting the Army down to its smallest size since 194. From a Saudi perspective, why not turn to? Guaranteed oil demand, a permanent Security Council seat, and a strong military are all that the Saudis need, and now that Chinese can provide them with just that. Rising, What Else is New? In 29, surpassed the US for the first time for highest Saudi oil imports. According to the US Energy Information Administration, Saudi Arabia provided the US 13% of its total oil imports in 212, while by comparison providing with 19% of its oil imports. This 6% difference may not seem significant, but it represents the shift of oil producers toward the rapidly growing oil market in. This shift is also demonstrated in the closing gap between US and Chinese trade with Saudi Arabia. 3 US-Saudi trade totaled $61 Billion in 212, while Sino-Saudi trade was nearly $55 Billion the same year. The International Monetary Fund announced that two-way trade between Saudi Arabia and increased nearly 58 times from 1999 to 212 and is only projected to continue exponentially in the next decade. This is a significant increase from the early years of the 21 st century and if projected path of trade increase holds true, will surpass the US in trade with Saudi Arabia by the end of the decade. 4 The growing Sino-Saudi trade relationship provides with a tangible interest in the security and stability of the Kingdom. Securing on-time, substantial, oil deliveries is vital to Chinese interests and Saudi Arabia provides with almost one-fifth of its total oil imports. For the same reason, the US has been invested in the internal affairs of the Kingdom and region for decades since its own oil boom. 1 US Oil Imports from Saudi Arabia- 2 Saudi Arabia Energy Overview- 3 US Early Release Overview Saudi Relations: Booming Trade- 1

3 US Trade between Saudi Arabia and both US and in billions of US dollars That is not to say that s increase in military spending is for the purpose of protecting its interests in the Gulf. The increase in spending only has the potential to yield Chinese ability to protect its interests in the region if it ever felt they were threatened. In the same vein, the Saudis would also be able to call on the Chinese for help. This is assuming the US would not show up first it is safe to conclude that the United States will have an interest in regional security for the foreseeable future Saudi Oil Export in Billion USD US Saudi Oil Exports to US & 5 Beijing s Arab Initiative In recent years, Beijing has declared that it wants to play a more enhanced role in the Middle East. The Chinese government has outlined a new four-point policy toward Arab States: 1. wants to help the Arab States resolve the region s hotspot issues through political means; 2. is seeking to achieve a win-win economic boost through mutually beneficial development goals in the region through joint-development projects; 3. also wants to play a bigger role in regional and international affairs, beginning their focus on the volatile Middle East; 5 US Imports from Saudi Arabia- 2

4 4. wishes to more effectively safeguard it legitimate rights and interests in the region; a. Translation: protecting their oil. 6 These four initiatives derive from s global strategy and echo perennial Chinese strategic thinking. Protection of interests through direct involvement in regional and global affairs is standard practice for the Chinese. Beijing has been operating in this manner for decades in the Pacific and should come as no surprise that the Chinese are looking to do the same in the Gulf (eg. territorial water dispute with Japan and Vietnam). Another part of Chinese investment in the Gulf is their investment in a Gulf rail system, connecting the region and in theory allowing for easier transit for Chinese investors in country. They have also undertaken a joint-development project with Saudi s state oil company, Aramco, to build a large refinery. In addition to infrastructure, reports have confirmed that is selling weaponized drones to Saudi Arabia, in a deal signed by Saudi Crown Prince Salman during his visit to in March. is also the source of Saudi s only ballistic missiles system: Dongfeng Saudi Arabia US Exports US Imports US Imports B/USD US Exports B/USD US Trade with Saudi Arabia/ in 213 Common Interests and Saudi Arabia share many common domestic interests and often employ similar means of achieving those objectives. Both deal with internal dissent harshly and do their best to quell global criticism. They have a very strict filter on external media and journalism while simultaneously projecting a harmonious and utopian society through state run media sources. Both Saudi Arabia and somehow seem rather invincible to outside pressure to stop abuse of minorities and journalist in addition to ending general human rights violations. In September 213, the Saudi Ambassador to summarized their similarities, Strategic cooperation in all areas with support of leaders for both countries is the foundation of the relationship between the two countries. 7 The two nations also share one vital ally, the United States. The word ally should be used lightly in this context. The US relationship with Saudi Arabia and is generally positive. However, 6 Wang Yi: Will Uphold "Four Supports" for Arab Stateshttp:// 7 Ties between Saudi Arabia, continue to be strong: ambassador - 3

5 disagreements between the US and these two allies do exist and Iran and Syria are just the most recent examples of disagreement. The Saudis were, and presumably are still, fuming over the renewed dialogue between the US and Iran. The Chinese are second only to Russia in continuously opposing US policy of intervention in Syria in the Security Council. Despite significant disagreements over major foreign policy issues, both and Saudi Arabia continue to value their unique relationship with the United States. From the outside looking in, it might make more sense for and the Saudis to have a closer bond with each other than they do with the US individually, but such a relationship simply will not be happening anytime soon. Following the Saudis tantrum last August after the US failed to act in Syria, the Saudis seemed indifferent to the Chinese veto on the same issue in the U.N. Security Council. This shows that the the Saudis are not completely ditching their old ally in the west as fast as it might appear. Not Quite Yet The US has managed to position itself into a very powerful spot in the world in recent decades and Saudi Arabia and will not turn their back on the US for each other for some time even if their relationship continues to grow. The world oil markets and American debt in Chinese banks are still priced in US Dollars. Concurrently, the Saudis still rely on the United States to patrol the Gulf and protect their exports from an ambiguous Iranian threat. The US is also s largest export partner for manufactured goods. Simply put, a total shun of the US is not realistic, nor should be it expected. The same goes for US feelings toward the two countries. While many scholars in Washington call for dramatic action targeting the human rights violations of and Saudi Arabia, those calls will likely go unanswered. It is far too idealistic to propose that human rights violations unfolding in America s largest trading partners would have the power to alter economic policy abroad. It is a sad truth that a nation like the United States, who defines itself as a champion of human rights, gives in to economic pressure to ignore those violations. About the Author: Mr. Daniel Morillo is a Security and Military Policy Analyst at the Gulf Institute. He graduated Cum Laude from Virginia Tech with a Bachelor of Arts in International Studies with a concentration in World Policy and Politics and a focus on terrorism and security in the Middle East and Africa. Daniel has coauthored pieces on Saudi Arabia s oil infrastructure and the Kingdom s involvement in Egypt and Syria. About the Institute for Gulf Affairs: Based in Washington, DC, the Institute for Gulf Affairs is an independent, nonpartisan organization that disseminates solid information about the Gulf region and produces thoughtful analyses of Gulf politics and international relations. 4

National Security and Fuel Economy. How Dependence on Oil Impacts National Security

National Security and Fuel Economy. How Dependence on Oil Impacts National Security National Security and Fuel Economy How Dependence on Oil Impacts National Security WELCOME Brigadier General Steve Cheney CEO of the American Security Project ASP is organized around the belief that honest

More information

Working Paper Research Unit Global Issues Stiftung Wissenschaft und Politik German Institute for International and Security Affairs.

Working Paper Research Unit Global Issues Stiftung Wissenschaft und Politik German Institute for International and Security Affairs. Working Paper Research Unit Global Issues Stiftung Wissenschaft und Politik German Institute for International and Security Affairs Friedemann Müller Paper presented at KAS CFIE CFISAE AHK International

More information

PEOPLE'S REPUBLIC OF CHINA. (New York, May 4, 2010) Please Check Against Delivery MISSION TO THE UNITED NATIONS

PEOPLE'S REPUBLIC OF CHINA. (New York, May 4, 2010) Please Check Against Delivery MISSION TO THE UNITED NATIONS PEOPLE'S REPUBLIC OF CHINA MISSION TO THE UNITED NATIONS 350 EAST 35TH STREET, NEW YORK, NY 10016 Please Check Against Delivery Statement by H.E. Ambassador Li Baodong Head of the Chinese Delegation at

More information

Comparing Levels of Development

Comparing Levels of Development 2 Comparing Levels of Development Countries are unequally endowed with natural capital. For example, some benefit from fertile agricultural soils, while others have to put a lot of effort into artificial

More information

THE HIDDEN COST OF OIL

THE HIDDEN COST OF OIL THE HIDDEN COST OF OIL U.S. oil imports: $309.4 billion in 2006, over three times the 2001 level. Cost of oil-related defense expenditures: $137 billion in 2006. Loss of current economic activity outflow:

More information

The rapid development of China presents challenges and opportunities for America.

The rapid development of China presents challenges and opportunities for America. Lesson Plan China Chad Flaig Purpose: Big Concept: The rapid development of China presents challenges and opportunities for America. Essential Questions What are the economic challenges that China presents

More information

Falling Oil Prices and US Economic Activity: Implications for the Future

Falling Oil Prices and US Economic Activity: Implications for the Future Date Issue Brief # I S S U E B R I E F Falling Oil Prices and US Economic Activity: Implications for the Future Stephen P.A. Brown December 2014 Issue Brief 14-06 Resources for the Future Resources for

More information

Lifting the Crude Oil Export Ban

Lifting the Crude Oil Export Ban September 2015 Lifting the Crude Oil Export Ban Explainer III: Geopolitical Ramifications of Lifting the Crude Export Ban In 1975, Congress passed the Energy Policy and Conservation Act, which paved the

More information

THE WORLD OIL MARKET. Mohan G. Francis

THE WORLD OIL MARKET. Mohan G. Francis THE WORLD OIL MARKET Mohan G. Francis With the Bush administration busily moving military forces to the Gulf region, the sense of an impending war has begun to make an impact on the world petroleum markets.

More information

China s growing energy demand: some international implications

China s growing energy demand: some international implications China s growing energy demand: some international implications Dr David Robinson Senior Research Fellow OIES 17 October 2013 NOG Stockholm 1 Outline Introduction China s energy demand v. policy objectives

More information

2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013

2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%

More information

How will the Statistical Adjustment on Manufacturing Services on Physical Inputs Owned by Others Affect China s Balance of Payments Statistics?

How will the Statistical Adjustment on Manufacturing Services on Physical Inputs Owned by Others Affect China s Balance of Payments Statistics? BOPCOM 12/07 Twenty-Fifth Meeting of the IMF Committee on Balance of Payments Statistics Washington D.C., USA January 14 16, 2013 (Rescheduled from October 29 31, 2012) How will the Statistical Adjustment

More information

The lower energy and feedstock prices overall have the following effects:

The lower energy and feedstock prices overall have the following effects: Impact of lower oil price on the European Chemical Industry Executive summary Oil prices have seen a rapid drop over the past six months with the price per barrel sinking to its lowest point since 2009.

More information

Graduation Day: The Broadening Opportunity Set of MSCI Emerging Markets

Graduation Day: The Broadening Opportunity Set of MSCI Emerging Markets Graduation Day: The Broadening Opportunity Set of MSCI Emerging Markets Last week, as students across the United States marched in commencement ceremonies, MSCI acknowledged the possible future inclusion

More information

Wheat Import Projections Towards 2050. Chad Weigand Market Analyst

Wheat Import Projections Towards 2050. Chad Weigand Market Analyst Wheat Import Projections Towards 2050 Chad Weigand Market Analyst January 2011 Wheat Import Projections Towards 2050 Analysis Prepared by Chad Weigand, Market Analyst January 2011 Purpose The United Nations

More information

Study Questions (with Answers) Lecture 14 Pegging the Exchange Rate

Study Questions (with Answers) Lecture 14 Pegging the Exchange Rate Study Questions (with Answers) Page 1 of 7 Study Questions (with Answers) Lecture 14 the Exchange Rate Part 1: Multiple Choice Select the best answer of those given. 1. Suppose the central bank of Mexico

More information

China s Institution Building Leading the Way to Asian Integration

China s Institution Building Leading the Way to Asian Integration China s Institution Building Leading the Way to Asian Integration Zheng Wang China s rise has been largely an economic phenomenon in the past twenty years. However, in the two years following the new leadership

More information

Oil Price Update Q2 2016

Oil Price Update Q2 2016 Oil Price Update Q2 2016 Are oil prices near their equilibrium? www.pwc.nl Oil Price Update Q2 2016 Are oil prices near their equilibrium? Global supply and demand Global oil prices have recovered by some

More information

Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net)

Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net) Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net) Before the U.S.-China Economic and Security Review Commission, hearing on China and the Future of Globalization.

More information

Is China Catching Up with the US?

Is China Catching Up with the US? 12 Is China Catching Up with the US? Kenneth Lieberthal Opinion Kenneth Lieberthal Is China Catching Up with the US? While China has emerged as a key player in global affairs, significant challenges to

More information

The importance of language competence to support international trade. Julie Sinnamon, CEO Enterprise Ireland

The importance of language competence to support international trade. Julie Sinnamon, CEO Enterprise Ireland The importance of language competence to support international trade Julie Sinnamon, CEO Enterprise Ireland For today The importance of language to business International trade - how we are doing Where

More information

The Impact of Gold Trading

The Impact of Gold Trading The Impact of Gold Trading By: Dan Edward, Market Analyst: FOREXYARD Date: December 2010 In this Issue: I. Introduction A brief history of gold trading II. What affects commodity prices? III. The Global

More information

Dr. Axel Berkofsky European Policy Centre (EPC), Brussels University of Milano, Italy

Dr. Axel Berkofsky European Policy Centre (EPC), Brussels University of Milano, Italy Dr. Axel Berkofsky European Policy Centre (EPC), Brussels University of Milano, Italy The EU and China in the Global System-Partners or Competitors? Keynote Remarks A lot has been said and written on EU-China

More information

Canada. Ottawa, February 10, 1993 92-007. Immediate release. Notes for an address

Canada. Ottawa, February 10, 1993 92-007. Immediate release. Notes for an address Immediate release Ottawa, February 10, 1993 92-007 Notes for an address by the Honourable Don Mazankowski Minister of Finance to the 50th annual conference of the Canadian Home Builders Association Toronto,

More information

Chapter 11. International Economics II: International Finance

Chapter 11. International Economics II: International Finance Chapter 11 International Economics II: International Finance The other major branch of international economics is international monetary economics, also known as international finance. Issues in international

More information

Wanted: a national labor force

Wanted: a national labor force Consulting Wanted: a national labor force Labor policies and youth unemployment in the Gulf region Delivering a skilled national workforce is one of the most critical challenges facing the GCC countries

More information

Foreign Affairs and National Security

Foreign Affairs and National Security Foreign Affairs and National Security Objectives: TLW understand and explain the following questions as it relates to the Foreign affairs of the American Government What is foreign policy? What is the

More information

Open Doors 2013. Report on International Educational Exchange. Produced by the Institute of International Education. In partnership with the

Open Doors 2013. Report on International Educational Exchange. Produced by the Institute of International Education. In partnership with the Open Doors 2013 Report on International Educational Exchange Produced by the Institute of International Education In partnership with the Bureau of Educational and Cultural Affairs U.S. Department of State

More information

The Iraqi Conflict: Its Impact on the Israeli-Palestinian Conflict

The Iraqi Conflict: Its Impact on the Israeli-Palestinian Conflict T The Iraqi Conflict: Its Impact on the Israeli-Palestinian Conflict by Eric Rouleau here is a widespread belief in the Arab world and in western pro- Palestinian circles that there is a strong Israeli

More information

Our primary commitment to you remains to responsibly provide a good deal on good fuel and everything else today, tomorrow and for years to come.

Our primary commitment to you remains to responsibly provide a good deal on good fuel and everything else today, tomorrow and for years to come. The truth About CITGO Our primary commitment to you remains to responsibly provide a good deal on good fuel and everything else today, tomorrow and for years to come. We want to be there for you at every

More information

News or Noise: Market-Moving Headlines

News or Noise: Market-Moving Headlines Asset Management News or Noise: Market-Moving Headlines By Tom Clarke, Senior Investment Analyst The essence of successful investing involves determining when market participants in aggregate have an expectation

More information

DSIP List (Diversified Stock Income Plan)

DSIP List (Diversified Stock Income Plan) Kent A. Newcomb, CFA, Equity Sector Analyst Joseph E. Buffa, Equity Sector Analyst DSIP List (Diversified Stock Income Plan) Commentary from ASG's Equity Sector Analysts January 2014 Concept Review The

More information

Option 1: Use the Might of the U.S. Military to End the Assad Regime

Option 1: Use the Might of the U.S. Military to End the Assad Regime 1 Option 1: Use the Might of the U.S. Military to End the Assad Regime The Syrian dictatorship s use of chemical weapons against its own people was terrible. But we must not let it overshadow the larger

More information

China Offshore Summit SHENZHEN, CHINA

China Offshore Summit SHENZHEN, CHINA China Offshore Summit SHENZHEN, CHINA 25-26 May, 2016 1 UNITED ARAB EMIRATES 2 nd largest economy in the Gulf Cooperation Council (GCC) region Population of about 10 million GDP (2014): USD 419 billion

More information

SAUDI FOREIGN POLICY "THE POLICY OF PRINCIPLES"

SAUDI FOREIGN POLICY THE POLICY OF PRINCIPLES SAUDI FOREIGN POLICY "THE POLICY OF PRINCIPLES" The Kingdom s Profile Located in the South West of the Asian Continent, the Kingdom of Saudi Arabia stretches more than two million Square Kilometers which

More information

RESERVE BANK OF AUSTRALIA

RESERVE BANK OF AUSTRALIA RESERVE BANK OF AUSTRALIA AUSTRALIA S FOREIGN TRADE AND INVESTMENT RELATIONSHIPS Ric Battellino Deputy Governor Remarks to 3 rd Annual Australian Parliamentary Conference, Perth 6 November 2009 AUSTRALIA

More information

The Engine of Growth - Alliance between SIAM and JAMA -

The Engine of Growth - Alliance between SIAM and JAMA - The Engine of Growth - Alliance between SIAM and JAMA - Fumihiko Ike, Chairman Japan Automobile Manufacturers Association SIAM Annual Convention, New Delhi, September 12, 2014 Thank you very much for the

More information

An International Seminar

An International Seminar An International Seminar Energy and Shipping The EU Iranian Oil Embargo and Implications for the International Oil Market A presentation by Costis Stambolis, AA. Dipl. Grad. Executive Director & Deputy

More information

Oil, Natural Gas and YOUR FUTURE

Oil, Natural Gas and YOUR FUTURE Oil, Natural Gas and YOUR FUTURE In the uncomfortably near future, the costs of oil and gas will not be measured in just dollars and cents. It will also be measured in the changes to our quality of life,

More information

Lifting the Crude Oil Export Ban

Lifting the Crude Oil Export Ban September 2015 Lifting the Crude Oil Export Ban Explainer I: Crude Oil Export Ban Overview The Bipartisan Policy Center (BPC) prepared this overview as part of a series to promote greater understanding

More information

MACROECONOMIC OVERVIEW

MACROECONOMIC OVERVIEW MACROECONOMIC OVERVIEW MAY 20 Koç Holding CONTENTS Global Economy... 3 Global Financial Markets... 3 Global Economic Growth Forecasts... 3 Turkey Macroeconomic Indicators... Economic Growth... Industrial

More information

F A C T S H E E T. EU-US Summit (Brussels, 26 March 2014) and EU-US relations

F A C T S H E E T. EU-US Summit (Brussels, 26 March 2014) and EU-US relations Brussels, 24 March 2014 140324/01 F A C T S H E E T EU-US Summit (Brussels, 26 March 2014) and EU-US relations The Leaders of the European Union and the United States of America will meet on 26 March 2014

More information

U.S. Export Controls E X T R A T E R R I T O R I A L I T Y - T H E L O N G A R M O F U. S. L A W. P e t e r W. K l e s t a d t M a y 8, 2 0 1 3

U.S. Export Controls E X T R A T E R R I T O R I A L I T Y - T H E L O N G A R M O F U. S. L A W. P e t e r W. K l e s t a d t M a y 8, 2 0 1 3 U.S. Export Controls E X T R A T E R R I T O R I A L I T Y - T H E L O N G A R M O F U. S. L A W P e t e r W. K l e s t a d t M a y 8, 2 0 1 3 U.S. EXPORT CONTROLS-EXTRATERRITORIALITY-THE LONG ARM OF U.S.

More information

PREMIUM TRAFFIC MONITOR MAY 2015 KEY POINTS

PREMIUM TRAFFIC MONITOR MAY 2015 KEY POINTS PREMIUM TRAFFIC MONITOR MAY 2015 KEY POINTS Passenger travel on international markets rose 6.2% in May compared to a year ago, accelerating on the 3.8% increase in April. Economy class travel grew at a

More information

John Chaimanis, Co-Founder and Managing Director, Kendall Sustainable Infrastructure (KSI)

John Chaimanis, Co-Founder and Managing Director, Kendall Sustainable Infrastructure (KSI) John Chaimanis, Co-Founder and Managing Director, Kendall Sustainable Infrastructure (KSI) United States Where do you see opportunities for powerful, effective investing today? Mr. Chaimanis: Energy. Clean,

More information

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt

Introduction. Learning Objectives. Chapter 14. Deficit Spending and The Public Debt Copyright 2011 by Pearson Education, Inc. Chapter 14 Deficit Spending and The Public Debt All rights reserved. Introduction Since 2007, the ratio of the official real net public debt to real GDP has increased

More information

Teaching Notes Crisis Guide: The Israeli-Palestinian Conflict

Teaching Notes Crisis Guide: The Israeli-Palestinian Conflict Teaching Notes Crisis Guide: The Israeli-Palestinian Conflict CFR.org s award-winning multimedia Crisis Guide series aims to provide a detailed, tailored resource for the exploration of the world s most

More information

A Snapshot of World Oil Demand and Oil Supply Evolution

A Snapshot of World Oil Demand and Oil Supply Evolution A Snapshot of World Oil Demand and Oil Supply Evolution Huei-Chu Liao and Yun Chi Chen Department of Economics, TamKang University, rubyliao@mail.tku.edu.tw Shu-Chuan Lin Department of Natural Resource

More information

Currency misalignment: The China case

Currency misalignment: The China case Currency misalignment: The China case Nihal Bayraktar Pennsylvania State University Harrisburg ABSTRACT Exchange rate misalignments have begun to attract more attention in recent years, with expanding

More information

ABC Ltd. International Expansion Strategy

ABC Ltd. International Expansion Strategy ABC Ltd International Expansion Strategy Abstract This research report presents the findings of the research on the global defense industry for aaustralian contractor for providing services for defence

More information

First of all I want to thank you for inviting me to. talk to you, in this prestigious university. Before

First of all I want to thank you for inviting me to. talk to you, in this prestigious university. Before Florida, the USA and France: a business partnership First of all I want to thank you for inviting me to talk to you, in this prestigious university. Before becoming minister in charge of the French overseas

More information

Objectives for Chapter 9 Aggregate Demand and Aggregate Supply

Objectives for Chapter 9 Aggregate Demand and Aggregate Supply 1 Objectives for Chapter 9 Aggregate Demand and Aggregate Supply At the end of Chapter 9, you will be able to answer the following: 1. Explain what is meant by aggregate demand? 2. Name the four categories

More information

BANK OF ISRAEL Office of the Spokesperson and Economic Information. Report to the public on the Bank of Israel s discussions prior to deciding on the

BANK OF ISRAEL Office of the Spokesperson and Economic Information. Report to the public on the Bank of Israel s discussions prior to deciding on the BANK OF ISRAEL Office of the Spokesperson and Economic Information September 7, 2015 Report to the public on the Bank of Israel s discussions prior to deciding on the General interest rate for September

More information

Asian Development Bank Institute. ADBI Working Paper Series

Asian Development Bank Institute. ADBI Working Paper Series ADBI Working Paper Series Is It Desirable for Asian Economies to Hold More Asian Assets in Their Foreign Exchange Reserves? The People s Republic of China s Answer Bin No. 306 August 2011 Asian Development

More information

America s Energy Exports: Opportunities for U.S. Allies and U.S. National Security Prepared Statement of David F. Gordon

America s Energy Exports: Opportunities for U.S. Allies and U.S. National Security Prepared Statement of David F. Gordon June 23, 2015 Testimony before the U.S. Senate Committee on Foreign Relations Subcommittee on Multilateral International Development, Multilateral Institutions, and International Economic, Energy and Environmental

More information

New Asian Security Concept For New Progress in Security Cooperation

New Asian Security Concept For New Progress in Security Cooperation New Asian Security Concept For New Progress in Security Cooperation Remarks at the Fourth Summit of the Conference on Interaction and Confidence Building Measures in Asia By Xi Jinping President of the

More information

Allocation of Merchandise Trade Data to Partner Country: Challenges Facing Canada

Allocation of Merchandise Trade Data to Partner Country: Challenges Facing Canada BOPCOM-8/14 Twenty-First Meeting of the IMF Committee on Balance of Payments Statistics Washington, D.C., November 4 7, 28 Allocation of Merchandise Trade Data to Partner Country: Challenges Facing Canada

More information

Rush hour in Kolkata (formerly Calcutta), India. Between 1990 and 2000, the number of motor vehicles per capita more than doubled in four

Rush hour in Kolkata (formerly Calcutta), India. Between 1990 and 2000, the number of motor vehicles per capita more than doubled in four Rush hour in Kolkata (formerly Calcutta), India. Between 1990 and 2000, the number of motor vehicles per capita more than doubled in four Asia-Pacific nations: South Korea, the Philippines, India, and

More information

LOW YIELDS FOREVER?...WHY THE FEDERAL RESERVE DOESN T MATTER ANYMORE

LOW YIELDS FOREVER?...WHY THE FEDERAL RESERVE DOESN T MATTER ANYMORE SWISS INFINITY INVESTMENT UDPATE OCTOBER 2015 ECHO FROM THE ALPS LOW YIELDS FOREVER?...WHY THE FEDERAL RESERVE DOESN T MATTER ANYMORE There is an intense debate going on about the Federal Reserve and when

More information

U.S. Involvement In the Iran-Iraq War

U.S. Involvement In the Iran-Iraq War U.S. Involvement In the Iran-Iraq War War Background Hoping to take advantage of the chaos of the Iranian Revolution Iraq invaded Iran in Sept. 1980 under their leader Saddam Hussein Iraq was worried

More information

GCC in times of cheap oil: an opportunity for economic reform and diversification

GCC in times of cheap oil: an opportunity for economic reform and diversification GCC in times of cheap oil: an opportunity for economic reform and diversification Kevin Körner & Oliver Masetti GCC in times of cheap oil: an opportunity for economic reform and diversification, June 215

More information

Nixon s Foreign Policy

Nixon s Foreign Policy 1 Nixon s Foreign Policy 2 TEKS 1, 24, 24(G), 26 3 Listen 4 5 Listen 6 Listen 7 8 Listen After a period of confrontation, we are entering an era of negotiation. Let all nations know that during this administration

More information

United States Military Training Mission: A Paradigm for Regional Security

United States Military Training Mission: A Paradigm for Regional Security United States Military Training Mission: A Paradigm for Regional Security By Major General Silas R. Johnson Jr., USAF Chief, United States Military Training Mission, Saudi Arabia As former coalition leaders

More information

OIL AND US FOREIGN POLICY. David S. Painter Department of History Edmund A. Walsh School of Foreign Service Georgetown University

OIL AND US FOREIGN POLICY. David S. Painter Department of History Edmund A. Walsh School of Foreign Service Georgetown University OIL AND US FOREIGN POLICY David S. Painter Department of History Edmund A. Walsh School of Foreign Service Georgetown University HISTORY AS A WAY OF LEARNING Importance of Studying the Past: Context for

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Chatper 34 International Finance - Test Bank MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The currency used to buy imported goods is A) the

More information

Introduction: Commercial Diplomacy and International Business: Merging International Business and International Relations

Introduction: Commercial Diplomacy and International Business: Merging International Business and International Relations Introduction: Commercial Diplomacy and International Business: Merging International Business and International Relations Donna Lee and Huub Ruël International business has always been intimately linked

More information

G20 ANTI-CORRUPTION WORKING GROUP PROGRESS REPORT 2013

G20 ANTI-CORRUPTION WORKING GROUP PROGRESS REPORT 2013 G20 ANTI-CORRUPTION WORKING GROUP PROGRESS REPORT 2013 September, 2013 G20 Anti-Corruption Working Group Progress Report 2013 ANTI-CORRUPTION WORKING GROUP PROGRESS Introduction 1. The renewal of the G20

More information

Free Trade is Good for Everyone

Free Trade is Good for Everyone Free Trade is Good for Everyone More Jobs Making the Trans-Pacific Partnership a Win-Win-Win for All Member Countries Increased Investment Mar. 2013 Trade Growth Introduction 1. JAMA welcomes the announcement

More information

World Energy Outlook 2013. Dr. Fatih Birol Chief Economist, International Energy Agency

World Energy Outlook 2013. Dr. Fatih Birol Chief Economist, International Energy Agency World Energy Outlook 2013 Dr. Fatih Birol Chief Economist, International Energy Agency World Energy Outlook 2013 Dr. Fatih Birol IEA Chief Economist Copenhagen, November 26th The world energy scene today

More information

Trends in U.S. Military Spending

Trends in U.S. Military Spending Trends in U.S. Military Spending Neil Bouhan Analyst, International Economics nbouhan@cfr.org Paul Swartz Analyst, International Economics pswartz@cfr.org June 28, 2011 Military budgets are only one gauge

More information

Middle East and North African Steel Markets to 2020

Middle East and North African Steel Markets to 2020 Receive a complimentary Metal Bulletin Research 2008 Middle East Steel map RRP 295 The most comprehensive research done to date about the Middle East steel market. George Matta, Ezz Steel A Strategic Outlook

More information

Ex-Im As A Lender Of Last Resort?

Ex-Im As A Lender Of Last Resort? FREEDOM PARTNERS PRESS OFFICE FOR IMMEDIATE RELEASE MEDIA@FREEDOMPARTNERS.ORG 6/3/2015 703.888.2527 VIEW ONLINE HERE Ex-Im As A Lender Of Last Resort? Arlington, VA The Export-Import Bank s leadership

More information

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015 Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While

More information

Understanding World Currencies and Exchange Rates

Understanding World Currencies and Exchange Rates Understanding World Currencies and Exchange Rates Contents Currencies Exchange Rates Exchange Rate Movements Interpreting Numerical Exchange Rate Movements How Foreign Exchange Markets Work Why Exchange

More information

Lecture 1: The intertemporal approach to the current account

Lecture 1: The intertemporal approach to the current account Lecture 1: The intertemporal approach to the current account Open economy macroeconomics, Fall 2006 Ida Wolden Bache August 22, 2006 Intertemporal trade and the current account What determines when countries

More information

Public Opinion on US Energy and Environmental Policy

Public Opinion on US Energy and Environmental Policy Public Opinion on US Energy and Environmental Policy Key findings from a nationwide survey among 1,101 likely 2016 voters, conducted December 5 to 9, 2014 for the KEY FINDINGS 2 Key Findings Promoting

More information

Foreign A id and Foreign Investment

Foreign A id and Foreign Investment 13 Foreign A id and Foreign Investment Financial flows to developing countries take two main forms aid that comes from foreign governments, often called official development assistance, and investment

More information

Answer: C Learning Objective: Money supply Level of Learning: Knowledge Type: Word Problem Source: Unique

Answer: C Learning Objective: Money supply Level of Learning: Knowledge Type: Word Problem Source: Unique 1.The aggregate demand curve shows the relationship between inflation and: A) the nominal interest rate. D) the exchange rate. B) the real interest rate. E) short-run equilibrium output. C) the unemployment

More information

2/7 The country risk categories range from 0 to 7. The lower the number the better the credit rating the country has.

2/7 The country risk categories range from 0 to 7. The lower the number the better the credit rating the country has. COUNTRY RISK CATEGORY 2/7 The country risk categories range from 0 to 7. The lower the number the better the credit rating the country has. EKN'S POLICY Sovereign risks: Normal risk assessment Other public

More information

Oman 20/20 vision 16 Deloitte A Middle East Point of View Fall 2013

Oman 20/20 vision 16 Deloitte A Middle East Point of View Fall 2013 20/20 vision 16 Deloitte A Middle East Point of View Fall 2013 Once a middle-income economy heavily dependent on depleting oil resources, the Sultanate of Oman has been actively pursuing a development

More information

Oil and Gas Prices. Oil and Gas Investor Summit London 17th-18th June 2014

Oil and Gas Prices. Oil and Gas Investor Summit London 17th-18th June 2014 Oil and Gas Prices Oil and Gas Investor Summit London 17th-18th June 2014 Oil Price Drowning in oil Economist, March 1999 $10 oil might actually be too optimistic. We may be heading for $5. Crude touches

More information

Chapter 9 Exporting Services

Chapter 9 Exporting Services Chapter 9 Exporting Services In this chapter... Role of the service sector in the United States and in world economies Differences between service and product exporting Places where service exporters can

More information

Chapter 1 THE MONEY MARKET

Chapter 1 THE MONEY MARKET Page 1 The information in this chapter was last updated in 1993. Since the money market evolves very rapidly, recent developments may have superseded some of the content of this chapter. Chapter 1 THE

More information

Energy Prices. Presented by: John Heffernan

Energy Prices. Presented by: John Heffernan Global Wholesale Energy Prices Presented by: John Heffernan Energy in 2012 In 2012, the growth in Energy consumption slowed in 2012 90% of this growth came from China & India Consumption & production of

More information

Chapter 4.1. Intermarket Relationships

Chapter 4.1. Intermarket Relationships 1 Chapter 4.1 Intermarket Relationships 0 Contents INTERMARKET RELATIONSHIPS The forex market is the largest global financial market. While no other financial market can compare to the size of the forex

More information

A Trade Agenda that Gets Results

A Trade Agenda that Gets Results A Trade Agenda that Gets Results Annex to the Canadian Chamber of Commerce Election Platform June 2015 A Trade Agenda that Gets Results The Canadian Chamber of Commerce 1 Canada s next government should

More information

Asia Insight: Online to Offline The Great Technology Migration

Asia Insight: Online to Offline The Great Technology Migration Asia Insight: Online to Offline The Great Technology Migration July 25, 2015 by Michael Oh of Matthews Asia A few years back, when we last wrote extensively about the significant developments undergone

More information

Emirates NBD Announces First Quarter 2015 Results

Emirates NBD Announces First Quarter 2015 Results For immediate release Emirates NBD Announces First Quarter 2015 Results Net profits up 60% to AED 1.7 billion on higher income and lower provisions Total Income up 15% to AED 3.8 billion as non-interest

More information

COMPENSATION AND BENEFITS TRENDS IN THE MIDDLE EAST

COMPENSATION AND BENEFITS TRENDS IN THE MIDDLE EAST COMPENSATION AND BENEFITS TRENDS IN THE MIDDLE EAST OVERVIEW OF POLITICAL AND ECONOMIC TRENDS IN THE MIDDLE EAST Our definition of the Middle East experiences some subtle variations year after year, although

More information

Investing In the Downstream:

Investing In the Downstream: Investing In the Downstream: The Point Of View of a National Oil Company Dr. Shokri M. Ghanem Chairman The National Oil Corporation of Libya Good afternoon ladies and gentlemen. Indeed I am delighted to

More information

JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY

JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY Testimony of Kenneth B. Medlock III, PhD James A. Baker, III, and Susan G. Baker Fellow in Energy and Resource Economics, and Senior Director,

More information

The True Cost of Desktop Support:

The True Cost of Desktop Support: : Understanding the Critical Cost Drivers of Desktop Support By Jeff Rumburg Managing Partner at: Introduction Most companies believe that the cost of desktop support consists entirely of the personnel,

More information

The Path to a Successful Economic Transition in Egypt

The Path to a Successful Economic Transition in Egypt WORKING FOR SHARED PROSPERITY THE ASSOCIATED PRESS/Ben Curtis The Path to a Successful Economic Transition in Egypt What the United States Can Do to Help Sabina Dewan, James Hairston, and Jordan Bernhardt

More information

Chinese Nonproliferation Policy and Export Control Practice Taibei August 28, 2013

Chinese Nonproliferation Policy and Export Control Practice Taibei August 28, 2013 Chinese Nonproliferation Policy and Export Control Practice Taibei August 28, 2013 LI Hong Vice President & Secretary General China Arms Control & Disarmament Association (CACDA) 1 China s View on Proliferation

More information

Financial Trends and Needs of Cooperatives and Implications of Consolidation in the Farm Credit System

Financial Trends and Needs of Cooperatives and Implications of Consolidation in the Farm Credit System Financial Trends and Needs of Cooperatives and Implications of Consolidation in the Farm Credit System ACCC Fact Sheet Series Paper #6 February 20, 2014 Brian C. Briggeman, Ph.D. Associate Professor and

More information

Resolving the South China Sea dispute

Resolving the South China Sea dispute Disarmament and International Security Committee Resolving the South China Sea dispute Introduction Territorial disputes in South China Sea have dominated the region for centuries, but it has not been

More information

Revisiting Global Energy Security. Girijesh Pant Jawaharlal Nehru University

Revisiting Global Energy Security. Girijesh Pant Jawaharlal Nehru University Revisiting Global Energy Security Girijesh Pant Jawaharlal Nehru University Global Age-Nation to Global Nation Economies are globalising. Globalising nation economies are integrating. Interoperability

More information

The Global Chemical Industry: US, China and Global Status and Opportunities, 2015

The Global Chemical Industry: US, China and Global Status and Opportunities, 2015 The Global Chemical Industry: US, China and Global Status and Opportunities, 2015 August 28, 2005 American Chemical Society Martha Gilchrist Moore Moore Economics mmoore@mooreeconomics.com Opportunities

More information

TAZEEM PASHA MANAGER, BUSINESS RETENTION AND EXPANSION SELECTUSA U.S. DEPARTMENT OF COMMERCE

TAZEEM PASHA MANAGER, BUSINESS RETENTION AND EXPANSION SELECTUSA U.S. DEPARTMENT OF COMMERCE TAZEEM PASHA MANAGER, BUSINESS RETENTION AND EXPANSION SELECTUSA U.S. DEPARTMENT OF COMMERCE Tazeem Pasha serves as Manager, Business Retention and Expansion at SelectUSA. Established by Executive Order

More information

Causes and Consequences of the Decline in the Price of Oil since June 2014

Causes and Consequences of the Decline in the Price of Oil since June 2014 Causes and Consequences of the Decline in the Price of Oil since June 2014 Christiane Baumeister Lutz Kilian University of Notre Dame University of Michigan CEPR Brent Price of Crude Oil in 2013 and 2014

More information